Town raises $90M at $1B valuation after Index exits term sheet over Instinct conflict
richardjnieva · x · 2026-09-05
- AI assistant startup Town is raising $90M at a $1B valuation (Series B), co-led by Kirsten Green (Forerunner Ventures) and Shawn Carolan (Menlo Ventures), with a16z and First Round participating.
- Index Ventures, previously reported to lead the round and holding a signed term sheet, pulled out entirely after rival AI assistant startup Instinct complained about a potential conflict of interest.
- Conviction, which holds stakes in both companies, also withdrew its planned participation.
- Town's text-based interface reportedly resembles Instinct's, highlighting how messy the Silicon Valley AI assistant gold rush has become. Town CEO Jean-Denis Greze declined to comment; none of the VCs or Instinct founder Noah Shinn responded to requests.
Related event: AI Assistant Startup Town Raises $90M at $1B Valuation as Index Exits(2 posts)→
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